3 Years For N.J. Loan Officer In Multi-Million Dollar Mortgage Fraud Scheme

NEWARK, N.J. (CBSNewYork/AP) -- A New Jersey loan officer involved in a large-scale mortgage fraud scheme that caused millions of dollars in losses was sentenced to three years in prison Tuesday.

Delio Coutinho, 73, of Woodbridge also must pay more than $1.3 million in restitution, federal prosecutors said.

Coutinho pleaded guilty in April 2014 to conspiracy to commit wire fraud.

Prosecutors said Coutinho and other defendants conspired to release liens on encumbered properties via fraudulently arranged short sale transactions. This allowed them to profit from new fraudulent mortgage loans obtained on the properties from other mortgage lenders.

To complete the sales, the defendants submitted false closing and other documents to mortgage lenders.

Coutinho was a loan officer at a northern New Jersey mortgage brokerage company who submitted false documents.

Overall, the conspirators obtained roughly $2 million in illegal mortgage proceeds.

(TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)